The change in a company's total cost from producing one more unit is called:
A) average total cost.
B) marginal cost.
C) average fixed cost.
D) variable cost.
E) average variable cost.

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost from producing one more unit, as opposed to average total cost, which is the total cost divided by the quantity produced. Average fixed cost is the fixed cost divided by the quantity produced, while variable cost is the cost that varies with the quantity produced. Average variable cost is the variable cost divided by the quantity produced.

The Change in a Company's Total Cost from Producing One